The GBP/USD is testing a key support level which is a decision zone for a bullish bounce or bearish breakout. The current wave patterns favour a reversal to retest resistance levels.
The GBP/USD wave pattern is indicating that a larger bullish ABC (blue) remains likely at the moment. The wave B (blue) however is invalidated if price manages to break below the bottom of wave X (purple). In that case, a bearish downtrend is likely to restart.
The GBP/USD has completed 5 bearish waves (orange) within a wave C (green) of a larger wave B (blue) if the larger bullish ABC (blue) will indeed take place. The confirmation will probably occur if price manages to break above the resistance trend lines. A break below the bottom of wave 2 vs 1 (green) means that price probably completed a wave 3 rather than a wave C (green).
